A mortgage rate lock is an agreement that may hold an interest rate for a specific period while your loan moves through the process. Rate locks can help protect borrowers from certain market changes before closing.
How a rate lock works
When a rate is locked, the lender generally agrees to honor that rate for a set number of days, assuming the loan closes within the lock period and the loan details do not materially change.
Common rate lock periods
- 15 days
- 30 days
- 45 days
- 60 days
- Longer periods, where available
Why rate locks matter
Mortgage rates can change. A rate lock may provide more certainty while you complete underwriting, appraisal, title, and closing requirements.
Comparing mortgage options and payment estimates?
What can affect a locked rate?
- Loan amount changes
- Credit profile changes
- Property value changes
- Occupancy changes
- Loan program changes
- Lock expiration
- Delayed closing
- Changes in points or credits
What happens if a lock expires?
If a rate lock expires before closing, the borrower may need a lock extension or may be subject to current market pricing. Policies and costs vary by lender.